Best Technology Covered Call ETFs of 2026
Technology covered call ETFs hold the large tech names, most of them U.S.-listed, and write calls on them. Tech stocks tend to move more than the market as a whole, and that higher volatility means the calls sold on them usually bring in more premium.
The trade-off is upside. In a strong rally, a fund that has written calls on most of its holdings will lag the stocks it owns, so the gap between these funds and plain tech funds shows up most clearly in good years.
Some funds here hold a short list of the biggest tech leaders, while others follow a technology index or hold other income ETFs, so the holdings section is a good way to see how concentrated each one is.
QDAY sits on top of this 9-fund list with +16.18% so far in 2026; at the other end, YMAG has returned −0.27%. It's a mixed picture, with 8 of 9 in positive territory and the middle fund up 5.6%.
Key Takeaways
- Best performer: QDAY, at +16.18% with distributions included.
- First and last are 16.4 percentage points apart, a reminder that funds in the same sector can behave very differently.
- The median result comes in up 5.6%.
The Top 4 in 2026
1. QDAY: Hamilton Enhanced Technology DayMAX ETF
QDAY ranks first, returning +16.18% once its distributions are counted. Its price has fallen 1.1%, and it is the 17.3 percentage points of payouts that keeps it ahead. On the strategy side, it writes calls on about 25% of the portfolio, it uses about 25% leverage and it holds its foreign currency unhedged. It currently offers 21.58% in annualized yield, at an MER of 1.1%. Its line-up pairs a core holding of established companies with an index fund used only to write 0DTE options, and borrows about a quarter more on top, for roughly 125% market exposure. Its holdings are led by Hamilton Champions U.S. Technology Index ETF and Invesco Nasdaq 100 ETF.
2. HTAE: Harvest Tech Leaders Enhanced Income ETF
Slotting in at number two is HTAE, up 9.85% this year. Its unit price is actually down 0.1% this year, but 10.0 percentage points of distributions more than made up for it. In short, it writes calls on about 33% of the portfolio, it uses about 25% leverage and it keeps currency moves out of the picture with a hedge back to Canadian dollars, for a 12.35% yield and a 2.23% MER. As the enhanced version of a Harvest Leaders fund, it borrows about 25% on top of the same portfolio and keeps call writing to a third of it or less.
3. HTA: Harvest Tech Leaders Income ETF (Hedged)
HTA follows at +9.34%, good for third place. Distributions did most of the work, adding 8.2 percentage points while the price rose 1.1%. As for how it is built, it writes calls on about 33% of the portfolio and it hedges the foreign currency in the portfolio. The payout rate is 9.94%, and the MER is 0.99%. Funds in this line-up keep the calls to a third of the holdings or less, leaving most of each portfolio free to grow, and pay monthly. The fund's largest positions include Intuit Inc., Motorola Solutions, Inc. and Apple Inc.. The fund's other units trade as HTA.B (unhedged) and HTA.U in U.S. dollars.
4. ZWT: BMO Covered Call Technology ETF
Rounding out the top four, ZWT is up 8.35% this year. Payouts have done most of the work: 5.1 percentage points, compared with 3.3% from price. Looking under the hood, it writes calls on roughly 20 to 50% of the portfolio and it skips currency hedging, so a weaker loonie helps and a stronger one hurts. Yield-wise it sits at 6.86%, while the MER is 0.72%. Its line-up pairs dividends with option premiums, and BMO points out that the premiums are generally taxed as capital gains, which can compare well with interest income. Apple Inc., Microsoft Corp. and AMAZON.COM INC sit near the top of its portfolio. Besides these units, there's ZWT.T (Target Cash Flow Units).
What Sets the Leaders Apart
Compare the two halves of the return and the answer is clear. Income was similar (10.1 percentage points versus 11.4 percentage points), while price moved apart (+0.78% for the leaders, −8.29% for the laggards). The funds that held the right names, and left more room for those names to run, came out ahead.
Lighter call writing has helped. The typical leader covers 33% of its portfolio with calls, while the typical laggard covers 50%, giving away more of its gains in exchange for income.
Count the leveraged funds and they cluster among the leaders: 2 at the top, 1 at the bottom. That says as much about the market's direction as about the funds.
For once, the highest yield and a strong return line up: QDAY pays 21.58% and ranks 1st of 9. Check that its price holds, since a payout funded by a falling price can't last.
Expenses diverge as well: 1.04% is the median MER at the top, 0.71% at the bottom.
The Bottom 4 in 2026
6. QMAX: Hamilton Technology Yield Maximizer ETF
Further down the list, QMAX sits 6th with +5.11%. Distributions of 9.3 percentage points have offset a 4.2% fall in price, with some room to spare. On the fund's mechanics, it adjusts how much of the portfolio it writes calls on as markets change and it lets exchange-rate swings come through unhedged. It yields 12.41% on an annualized basis and costs 0.8% in MER. Its sister funds span sectors from banks and utilities to tech, health care and Treasuries, all selling at-the-money calls on part of the portfolio for monthly income. Alongside the main units sits QMAX.U in U.S. dollars.
7. TXF: CI Tech Giants Covered Call ETF (Hedged)
TXF lands in 7th place, up 4.15% this year. The return rests on its payouts, since the units are down 6.3% and distributions added 10.4 percentage points. In how it is run, it writes calls on about 25% of the portfolio and it uses a currency hedge so exchange-rate moves stay out of the return, and it yields 14.68% with an MER of 0.71%. It is also on offer as TXF.B (unhedged) and TXF.U in U.S. dollars.
8. QQQY: Evolve NASDAQ Technology Enhanced Yield Index Fund
Down in 8th place, QQQY has put up +3.42%. Here the income outweighs the price: 11.1 percentage points from payouts against a 7.7% drop. Its yield is running at 15.14% with an MER of 0.72%, and it writes calls on about 50% of the portfolio and its currency exposure is hedged back to Canadian dollars. There is also QQQY.U in U.S. dollars.
9. YMAG: Tech Innovators Yield Shares Purpose ETF
YMAG sits at the bottom with −0.27%. Even with 14.7 percentage points from distributions, the 15.0% drop in price keeps it negative. As built, it writes calls on about 50% of the portfolio, it uses about 25% leverage and it hedges, so exchange rates have little effect on its return; the current yield is 20.69% and the MER 0.57%. Leverage works against a fund when its holdings slip, and that has shown here. Like its sister funds, it aims to keep long-term exposure to a favourite stock while turning part of it into monthly income.
What to Watch in Technology Funds
Watch how much of each portfolio is under calls. Tech shares can rally hard, and a fund that has sold calls on most of its holdings can lag well behind the stocks it owns in a strong year, even while it pays a generous distribution.
Concentration is the other thing to weigh. Several of these funds hold a short list of the same mega-cap names, so owning two of them may not spread your risk as much as you'd expect.
How to Compare Them Yourself
Judge these funds on total return. Price plus distributions is the only fair way to compare covered call ETFs, since much of their return arrives as cash rather than as a higher unit price.
After total return, check the mix. Is the fund mostly paying you, or mostly growing? Both can work, but a payout that runs ahead of what the fund earns tends to show up later as a lower price.
Last of all, check the fine print: the MER, whether the fund uses leverage, and what it actually holds. Our Compare tool lines up any five funds so you can see these side by side.
All 9 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | QDAYHamilton Enhanced Technology DayMAX ETF | +16.18% | −1.09% | 21.58% | 1.10% | Yes |
| 2 | HTAEHarvest Tech Leaders Enhanced Income ETF | +9.85% | −0.15% | 12.35% | 2.23% | Yes |
| 3 | HTAHarvest Tech Leaders Income ETF (Hedged) | +9.34% | +1.10% | 9.94% | 0.99% | No |
| 4 | ZWTBMO Covered Call Technology ETF | +8.35% | +3.26% | 6.86% | 0.72% | No |
| 5 | TLFBrompton Tech Leaders Income ETF | +5.64% | −0.18% | 10.94% | 0.85% | No |
| 6 | QMAXHamilton Technology Yield Maximizer ETF | +5.11% | −4.21% | 12.41% | 0.80% | No |
| 7 | TXFCI Tech Giants Covered Call ETF (Hedged) | +4.15% | −6.28% | 14.68% | 0.71% | No |
| 8 | QQQYEvolve NASDAQ Technology Enhanced Yield Index Fund | +3.42% | −7.68% | 15.14% | 0.72% | No |
| 9 | YMAGTech Innovators Yield Shares Purpose ETF | −0.27% | −15.00% | 20.69% | 0.57% | Yes |
Too new to rank this year: PAYT and TECY.
How We Rank
Every fund is measured the same way: total return for 2026 from its December 31, 2025 close, with each distribution reinvested in more units, which gives values similar to fund managers' own figures. We rank main Canadian-dollar units only and list funds that launched during the year separately.
Past returns don't predict future returns. This article is written automatically from market data and updated every trading day; it is for information only and is not investment advice. Check each provider's documents before investing.